Reliance Industries Q1 FY2026 Results: Strong Performance Across Key Segments

Table of Contents

Reliance Industries Limited (RIL), India’s most valuable company, has announced its Q1 results for the financial year 2025–26. The results reflect a sharp rebound in profitability, driven by robust performances in its consumer businesses—Jio and Retail—along with an exceptional one-time gain from the sale of its stake in Asian Paints.

Earnings Highlights

Net Profit and Revenue

Consolidated Profit After Tax (PAT) rose by 78% year-on-year to ₹26,994 crore, far surpassing analyst expectations.
Including the one-time income of ₹8,924 crore from the stake sale in Asian Paints, the total reported net profit surged to ₹30,783 crore.
Gross revenue increased by 6% year-on-year to ₹2.73 lakh crore.
EBITDA came in at ₹58,024 crore, marking a 36% year-on-year growth with EBITDA margins expanding to 21.2% from 16.6%.

These results indicate strong underlying business growth, even when adjusted for the non-recurring income.

Reliance Industries Q1 FY2026 Results

Segment-Wise Performance

1. Oil-to-Chemicals (O2C)

Segment revenue witnessed a slight decline due to lower crude oil prices and planned refinery maintenance.
However, EBITDA rose by 11% year-on-year to ₹15,510 crore, driven by better fuel margins and improved product mix.

2. Oil & Gas (Exploration and Production)

Revenues and earnings from the E&P segment declined modestly (~4%) due to reduced output from the KG-D6 gas field and higher maintenance costs.
Despite this, the business remained operationally efficient.

3. Digital Services – Reliance Jio

Reliance Jio reported revenue of ₹41,054 crore, up 19% year-on-year.
EBITDA grew by 24% to ₹18,135 crore.
The average revenue per user (ARPU) rose to ₹208.8.
Jio now has over 200 million 5G subscribers, and added 20 million 5G homes, reinforcing its leadership in India’s digital space.

4. Retail Business

Reliance Retail posted an 11% rise in revenue, with EBITDA growing approximately 13% year-on-year.
Profit after tax (PAT) surged by 28%, fueled by strong same-store sales growth and expansion in e-commerce and quick-commerce channels.

5. New Energy and Emerging Businesses

Reliance’s green energy and new ventures, including its digital streaming JV with Disney-Star and Nvidia-powered data centres, are showing early signs of operational momentum.
Capital expenditure for the quarter stood at ₹29,875 crore, focused on 5G rollout, new energy infrastructure, and digital services.

Management Commentary

Mukesh Ambani, Chairman and Managing Director of RIL, called the performance a result of a “triple-engine turnaround” with growth being driven by three core segments—Jio, Retail, and O2C. He emphasized continued investments in new-age businesses like renewable energy, data infrastructure, and consumer tech as long-term growth levers.

Retail CFOs also noted a significant uptick in daily orders through quick-commerce channels, though sales of categories like consumer durables and electronics were affected by monsoon season demand softness.

Strategic Insights

Strong Core Business: Even without the one-time Asian Paints gain, Reliance posted over 25% growth in recurring PAT.
Digital and Consumer Focus: Jio and Retail are increasingly becoming the company’s main growth drivers.
Capex Discipline: Despite high capital investments, the company has maintained strong operating leverage and improved EBITDA margins.
Operational Recovery in O2C: While top-line growth was flat, margin improvement in this segment indicates strategic efficiency.
Future Readiness: Investments in green energy, AI data centres, and digital content show the company is future-oriented.

Analyst Reactions and Stock Performance

Market analysts welcomed the results:

JM Financial maintained a “Buy” rating, citing strong digital and consumer verticals that can lead to 15–20% EPS growth in coming quarters.
Brokerages such as Motilal Oswal, Prabhudas Lilladher, and SMC Global also viewed the results positively, calling it a “strong comeback quarter.”
Reliance stock rose significantly post-results, boosting overall market indices like Nifty and Sensex.

Key Risks and Forward-Looking Statements

Sustainability of margins in Retail and Jio amid rising competition will be closely watched.
Execution of the new energy transition plan involving ₹75,000 crore in investments will be a key long-term trigger.

Conclusion

Reliance Industries’ Q1 FY2026 results mark a robust beginning to the fiscal year. The company’s ability to balance traditional businesses like refining and petrochemicals with modern, high-growth verticals such as telecom, retail, and clean energy showcases its strategic agility.

While the one-time income from the Asian Paints sale provided a short-term boost, the core performance across all major segments confirms that Reliance is well-positioned to deliver sustainable long-term growth.